> For the complete documentation index, see [llms.txt](https://docs.binkbtc.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.binkbtc.com/core-features/earn-yield.md). # Earn Yield ### Overview Bink allows you to earn yield on your Bitcoin through stBTC (staked Bitcoin) on the Botanix network. Unlike traditional yield products that rely on inflationary token rewards or unsustainable incentives, Bink's yield comes from **real Bitcoin activity**—specifically, the redistribution of network gas fees paid by users transacting on Botanix. When you move Bitcoin from your Available Balance to your Savings Balance, it's automatically converted to stBTC in the background, allowing you to earn Bitcoin-denominated yield while maintaining full liquidity and control of your funds. *** ### How Bitcoin Yield Works #### Gas Fee Redistribution The yield you earn comes directly from **actual network usage**, not speculation or artificial rewards: **The Mechanism:** 1. Every transaction on the Botanix network generates gas fees paid in Bitcoin 2. **50% of all gas fees** are redistributed to stBTC holders 3. The other 50% goes to network operators and the Botanix Labs team 4. Your stBTC increases in value relative to BTC over time as more gas fees get added **Key Point:** This means Bitcoin in → More Bitcoin out, earned from real economic activity on the network. {% hint style="info" %} **Learn More** Check out the [Bitcoin Yield documentation](https://docs.botanixlabs.com/bitcoin-yield) to learn more about how it works. {% endhint %} *** ### Why This Model Is Different #### Sustainable and Transparent Traditional crypto yields often come from: * :heavy\_multiplication\_x:Inflationary token emissions (dilutes value over time) * :heavy\_multiplication\_x: Unsustainable incentive programs (temporary rewards) * :heavy\_multiplication\_x: Opaque lending operations (hidden counterparty risk) * :heavy\_multiplication\_x: Centralized custodians (trust required) **Bink's stBTC yield comes from:** * ✓ **Real Bitcoin transactions** - Gas fees from actual network usage * ✓ **Transparent distribution** - 50% of fees always go to stakers * ✓ **No inflation** - No new tokens minted to pay rewards * ✓ **Permissionless** - Built on smart contracts, not centralized entities * ✓ **Instantly redeemable** - No lock-up periods or withdrawal delays #### Backed by Real Economic Activity Your yield isn't based on speculation or promises—it's backed by measurable network usage. As Botanix grows and more people use Bitcoin for DeFi activities, trading, payments, and borrowing, the gas fees (and therefore yields) increase proportionally. **Network Activity Drives Yield:** * More users depositing Bitcoin → More bridge fees * More DeFi activity → More transaction fees * More withdrawals → More exit fees * All fees → More yield for you *** ### How Yield Is Applied #### Automatic Compounding Your yield accrues **continuously and automatically**. You don't need to claim rewards or reinvest manually. **How it works:** * Your stBTC balance stays the same (e.g., 0.1 stBTC remains 0.1 stBTC) * The **Bitcoin value** of your stBTC increases over time * When you convert back to BTC, you receive your original deposit plus accumulated yield **Example:** * Day 1: Deposit 1.0 BTC, receive 1.0 stBTC (worth 1.0 BTC) * Day 365 @ 5.41% APY: Your 1.0 stBTC is now worth 1.0541 BTC * You redeem: Receive 1.0541 BTC (your original 1.0 BTC + 0.0541 BTC yield) *** ### Security and Audits #### Smart Contract Security The stBTC contracts have been audited by leading blockchain security firms: * **Spearbit** - Comprehensive smart contract audit * **Sigma Prime** - Additional security review The protocol is built on the **EIP-4626 vault standard**, the same battle-tested standard used by major Ethereum staking products. #### Network Security Botanix is secured by a **16-member federation** of reputable entities including: * Galaxy * Alchemy * Fireblocks * Other independent validators This distributed custody model ensures no single entity can compromise the network or your funds. *** ### Earning Yield on USDC In addition to Bitcoin yield, Bink also offers yield on USDC deposits through integration with **Dolomite** lending markets. **USDC Yield:** * Generated from borrowing demand on Dolomite * Automatically applied to USDC in your Savings Balance * No conversion required—USDC stays as USDC The yield comes from real lending activity, where borrowers pay interest to access USDC liquidity. *** ### Getting Started with Yield #### Moving Funds to Savings Balance To start earning yield on your deposits: 1. **Deposit Bitcoin or USDC** to your account (goes to Available Balance) 2. Tap **Bitcoin or USDC** on your home screen to go to their respective asset page 3. **Move funds to Savings Balance**: * Tap + **Add Savings** * Select the amount you want to move to Savings * Confirm the transaction 4. **Yield starts accruing immediately** once funds are in Savings 5. **Track earnings** on your home screen in real-time Your Bitcoin is automatically converted to stBTC in the background when you move it to Savings Balance. USDC remains USDC. > **Note:** Only funds in your Savings Balance earn yield. Funds in your Available Balance remain liquid and ready for immediate use but don't generate returns. *** ### Frequently Asked Questions **Q: Is my Bitcoin locked when earning yield?** A: No. Your funds remain liquid and can be withdrawn, traded, or moved at any time. **Q: What's the difference between base yield and boosted yield?** A: Base yield is low-risk and earned automatically. Boosted yield uses DeFi strategies to multiply returns but involves borrowing and liquidation risk. **Q: Where does the yield come from?** A: 50% of all Bitcoin gas fees from Botanix network transactions. This is real, measurable activity—not token inflation or unsustainable incentives. **Q: Can I lose money earning base yield?** A: The yield mechanism itself has no risk of loss. However, you still have Bitcoin price exposure—if BTC drops in dollar value, your total dollar value decreases even though you're earning more BTC. **Q: How often is yield distributed?** A: Continuously. Your stBTC value increases in real-time as gas fees are collected and distributed. **Q: Can I use my stBTC while it's earning yield?** A: Yes. stBTC is a liquid token that can be used as collateral for borrowing or moved to your Available Balance for trading/sending. **Q: What happens if Botanix network usage decreases?** A: Yield rates would decrease proportionally since they're tied to gas fees.